Client Alert: INCREASE IN SALARY THRESHOLD FOR ADMINISTRATIVE EXEMPTION FOR EMPLOYEES WORKING IN NEW YORK CITY

FIRM

Starting on January 1, 2025, the minimum salary for New York City employees to meet the salary  threshold for the administrative exemption is $1,237.50 per week or $64,350 per year.  

In addition to being paid above the salary threshold, to be exempt from overtime pay under this  provision, an employee’s primary duty must be the performance of office or non-manual work  directly related to management or general business operations of the employer or the employer’s  customers; including the exercise of discretion and independent judgment with respect to matters  of significance.  \

Employees who do not meet both the salary threshold and the duty test set forth above, must be  paid 1.5x the minimum hourly wage for all overs worked over 40 in a workweek.  

The salary threshold is next scheduled to change on January 1, 2026, at which time it will increase  to $1,275 per week or $66,300 per year.  

Contacting Pavia & Harcourt LLP  

Questions regarding matters discussed in this publication and other employment law related  matters may be directed to Adam Mitzner at [email protected]  

About Pavia & Harcourt LLP  

Established in 1951, Pavia & Harcourt LLP is a business law firm concentrating in international  commercial and corporate transactions, banking, media and entertainment, real estate, litigation  and arbitration, intellectual property, estate planning and administration, and matrimonial law. We  are based in New York City.  

This publication by Pavia & Harcour

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